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Andorra remains one of Europe’s lightest tax jurisdictions. Personal income tax (IRPF) is not levied on the first €24,000 of income; a 5% rate applies from €24,001-40,000, and 10% above €40,000. Corporate tax (Impost de Societats) is 10%, though a 3% minimum effective rate has applied since 2024 to curb excessive deductions. The indirect tax IGI, the local equivalent of VAT, is just 4.5%, one of the lowest in Europe. Andorra has no wealth tax and no inheritance or gift tax, and capital gains on most securities are exempt. That said, between 2024 and 2026 oversight has tightened: a special tax on foreign real-estate investment (3-10%) and the minimum effective corporate rate were both introduced. Tax residency is triggered after more than 183 days of stay per year, and residents are taxed on worldwide income.
